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Posted by bears123 on May 14th, 2019

If you’ve ever debated whether or not your credit score affects your insurance score Trayvon Mullen Jersey , you might be surprised to learn there is a direct relationship between the two. In the 1990s, Fair Isaac performed an experiment with a number of automobile insurers to determine if credit scores could be a reliable indicator of a homeowner’s and car insurance claims loss. When they gathered all their data and analyzed it, they discovered some correlations when comparing insurance claims and credit background.
Nobody has figured out precisely what the relationship is or why a person’s credit score affects their claim history. It is been publicized about how insurance corporations will rate a person’s exposure for a claim by looking at their credit background. Even though this theory seems to make sense, a study carried out in 2000 suggested the correlation between being responsible with individual finance and long term claim risks to be unsupported. It stated that a lot more research needed to be done before conclusive evidence could be gathered.
To date, you will find only 3 states that have prohibited the use of credit scoring for the pricing of insurance premiums. The states are California Johnathan Abram Jersey , Hawaii, and Massachusetts. The state of Maryland has prohibited the use of credit scores for rating homeowner policies.